Costco Wholesale Corporation Reports Strong Third Quarter Results for Fiscal 2026
Costco Wholesale Corporation, the prominent retail giant known for its membership-based warehouse club model, released its operating results for the third quarter and year-to-date of fiscal 2026, demonstrating robust growth in both sales and profitability. The results were shared in a press release dated May 28, 2026, highlighting a positive trajectory for the company amid a challenging retail landscape.
1. Impressive Sales Growth
For the third quarter, which ended on May 10, 2026, Costco reported net sales of $69.15 billion, reflecting an impressive increase of 11.6% compared to $61.96 billion for the same quarter last year. Year-to-date sales for the first 36 weeks of fiscal 2026 also showed strong performance, rising 9.6% to $203.37 billion from $185.48 billion in the prior year.
Comparable Sales Performance
Costco's comparable sales, a key metric for retail performance, also illustrated growth across various regions:
- U.S.: 9.4% increase (Adjusted: 6.8%)
- Canada: 10.7% increase (Adjusted: 6.2%)
- Other International: 11.2% increase (Adjusted: 5.9%)
- Total Company: 9.8% increase (Adjusted: 6.6%)
Notably, digitally-enabled sales surged by 21.5% for the quarter, underscoring the importance of e-commerce in Costco's overall strategy.
2. Profitability on the Rise
Costco's net income for the third quarter reached $2.19 billion, translating to $4.93 per diluted share, compared to $1.90 billion and $4.28 per diluted share in the same quarter last year. For the first 36 weeks of fiscal 2026, net income increased to $6.23 billion, or $14.01 per diluted share, up from $5.49 billion and $12.34 per diluted share in the previous year.
Revenue Breakdown
Total revenue for the quarter, including membership fees, was reported at $70.53 billion, compared to $63.21 billion for the same period last year. Membership fees alone increased to $1.37 billion from $1.24 billion, contributing significantly to the overall revenue growth.
3. Operational Footprint
As of the end of the third quarter, Costco operates 931 warehouses globally. This includes 639 locations in the United States and Puerto Rico, 115 in Canada, and various others in Mexico, Japan, the United Kingdom, and several other countries. In addition to physical locations, Costco continues to expand its e-commerce capabilities across multiple regions, including the U.S., Canada, and several Asian markets.
4. Future Outlook
Costco's management emphasizes a commitment to sustaining growth despite potential economic uncertainties. The company is scheduled to hold a conference call to discuss the results further at 2:00 p.m. (PT) today, providing investors and analysts with more in-depth insights into future strategies and performance expectations.
Conclusion
Costco's third-quarter results for fiscal 2026 underscore the company's resilience and adaptability in a competitive retail environment. With significant sales growth, improved profitability, and a strategic focus on e-commerce, Costco appears well-positioned for continued success in the coming quarters. As the company navigates challenges such as inflation and competition, its strong operational foundation and customer loyalty will remain crucial to its long-term performance.
